Closing Bell: Sensex, Nifty end flat; metals drag, FMCG gains

Indian benchmark indices ended flat in the volatile session on July 8. At close, the Sensex was down 36.22 points or 0.05 percent at 79,960.38, and the Nifty was down 3.30 points or 0.01 percent at 24,320.50

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Today, the Nifty index traded within a narrow range and closed nearly unchanged, resulting in a muted session. Sector-wise, there was a mixed trend with gains seen in FMCG and energy, while metal, realty, and pharma sectors ended lower. The broader indices also showed a subdued trend, closing marginally down.

We anticipate a time-wise correction in the Nifty index due to rotational buying in heavyweight stocks, which has limited the downside so far. However, there are ongoing buying opportunities in select sectors and themes. Traders should exercise caution in stock selection and prioritize effective trade management strategies.

Due to lack of any fresh trigger, markets witnessed a range-bound session throughout the day and ended marginally weak owing to select profit-taking in banking, telecom and realty shares. Weak Asian cues also weighed on sentiment, while stretched valuations could see investors maintain caution for sometime.

Nifty opened on a flat note and consolidated during the day to close marginally in the red down ~3 points. On the daily charts we can observe that the Nifty has faced resistance from the zone of 24370 – 24500. Bollinger bands on the hourly charts suggest contraction and hence we are expecting range-bound price action over the next few trading sessions. Going ahead we expect the Nifty to trade in the range 24100 – 24400.

Bank Nifty witnessed a consolidation. The price action of the last eight to ten trading sessions has created a broad range of 52000 – 53500 and we expect the Bank Nifty to consolidate within this range over the next few trading sessions.

The Nifty remained range-bound during the day, as market participants appeared to be in no hurry to decide the market's direction. Support remains at 24,240, and a fall below this level might weaken the strength of the bulls. Until then, dips might be bought into. On the higher end, resistance is seen at 24,375-24,400. Above 24,400, the index might move towards 24,600.

The markets commenced the week on a muted note at 24,330 and due to a lack of momentum, the Index remained rangebound throughout the day to settle the trade at 24,320.55 with a minuscule loss of 3.30 points. Among the sectors, FMCG and Energy were the top performers while PSU Banks and Metal were the major laggards. The Railway segment was the star performer of the day as almost all the counters surged over 5-6%.

Around its record levels, the Index has formed a DOJI candlestick pattern which indicates indecisiveness between the bulls and bears. We believe the choppy trade can be anticipated in the Index with the downside being protected at 24,220 while the immediate hurdle is placed at 24,400.

The market is turning to a consolidation phase due to the absence of major triggers to support the current premium valuation in the near term, prompting investors to book some profits. The earnings season is around the corner, and the initial expectation is subdued. With stable input prices and ongoing price cuts, the period of margin expansion appears to be concluding, which is likely to affect earnings and valuations.

Indian rupee ended flat at 83.50 per dollar on Monday versus Friday's close of 83.49.

Indian benchmark indices ended flat in the volatile session on July 8.

At close, the Sensex was down 36.22 points or 0.05 percent at 79,960.38, and the Nifty was down 3.30 points or 0.01 percent at 24,320.50. About 1570 shares advanced, 1988 shares declined, and 95 shares unchanged.

Top Nifty gainers were ONGC, ITC, HDFC Life, HUL and Tata Consumer Products, while losers were Divis Labs, Titan Company, BPCL, Shriram Finance and Adani Ports.

On the sectoral front, capital goods, FMCG and oil & gas up 0.6-1.5 percent, while auto, bank, healthcare, metal, realty, power, telecom down 0.4-0.8 percent.

The BSE midcap and smallcap indices ended marginally lower.

The company has received a letter of intent from Adani Green Energy Limited worth Rs 409 crores (inclusive GST) for supply for various LV/MV Cables.

Sensex Today | BSE FMCG index up 1.5%; Eveready Industries, GRM Overseas, GRM Overseas among major gainers

#1 Global business grows 8.52 percent to Rs 23.77 lakh crore, YoY
#2 Global advances increase 8.14 percent to Rs 10.72 lakh crore, YoY
#3 Global deposits up 8.83 percent at Rs 13.06 lakh crore, YoY
#4 Domestic deposits grow 5.25 percent to Rs 11.05 lakh crore, YoY
#5 Domestic advances increase 8.51 percent to Rs 8.81 lakh crore, YoY

#1 Consolidated entity expects revenue growth to be around 22-23 percent, YoY
#2 Gross merchandise value growth is expected to be in mid-twenties, YoY
#3 Beauty vertical revenue growth is expected to be around 22-23 percent, YoY
#4 Beauty vertical gross merchandise value growth is expected to be higher, in high twenties, YoY
#5 Fashion vertical is expected to deliver revenue growth of around 20 percent, YoY
#6 Fashion vertical gross merchandise value growth is expected to be lower at mid-teens, YoY

Godrej Industries’ Chemicals Business has announced the signing of a Business Transfer Agreement with Shree Vallabh Chemicals Unit II (Kheda) with the intention to acquire their Ethoxylation Unit II.

Sensex Today | Nifty FMCG index outperforms other sectoral indices

Indian Rupee gained by 0.04% today on a weak Dollar and decline in crude oil prices. However, weak domestic markets capped sharp gains. US Dollar declined on disappointing non-farm payrolls report on Friday, which raised expectations that US Federal Reserve may cut interest rates in its September FOMC meeting.

We expect Rupee to trade with a slight positive bias on weak tone in the US Dollar and FII inflows. However, a correction in the domestic markets and political uncertainty in France as the election results indicate at a hung parliament may cap sharp upside. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.70.

Goldman Sachs is expecting a Budget that will not compromise on the capex spend or any relaxation in the fiscal consolidation path. It has turned cautious on raising expectations of any relaxation in fiscal consolidation and a pivot towards welfare spending at the cost of capex, according to a note published on July 8.

The note expects Centre to stick to the fiscal deficit target of 5.1 percent for FY25, which could be further lowered to 4.5 percent by FY26.

The Goldman Sachs note implies any welfare-oriented spending may not require reduction in capex given that Centre has received a much higher dividend payout from RBI recently. "Centre's robust capex CAGR of roughly 31 percent between FY21-24 has resulted in a growth spurt, while welfare spend has been a net drag since FY22", Goldman Sachs said.

The fiscal policy may continue to weigh on growth in FY25 as well, keeping in view the fiscal consolidation target being pursued by the Centre, the note added. Read More

Shares of KPI Green Energy surged 4 percent following the company's signing of a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam (GUVNL) for a 50MW Solar-Wind Hybrid Power Project.

KPI Green Energy develops and maintains grid-connected solar power projects, selling the power units generated from its solar plants.

The project, consisting of 50 MW of solar and 16.80 MW of wind power, was awarded through a competitive bidding process by GUVNL on November 1, 2023, and secured via a reverse E-Auction on January 22, 2024.

Sensex Today | BSE Bank index underperforms

#1 Company’s Q1 performance was broadly in-line with our estimates
#2 Company’s demand trends continued gradual improvement
#3 Management expects revenue growth to improve, led by domestic volume growth
#4 Revenue growth to improve led by higher realisations

Sensex Today | Nifty Bank index down 0.5%; AU Small Finance Bank, Bank of Baroda, IDFC First Bank among major losers

#1 Standalone business registers 9 percent growth, YoY
#2 Adds 61 stores, expanding combined retail network presence to 3,096 stores, YoY
#3 Jewellery segment grows 9 percent, YoY
#4 Watches & Wearables segment shows 15 percent growth, YoY
#5 EyeCare segment registers 3 percent growth, YoY
#6 Emerging businesses grows 4 percent, YoY
#7 CaratLane records 18 percent growth, YoY

Sensex Today | Nifty Bank underperforms

#1 Domestic loans declined by 2 percent QoQ in Q1 business update (versus 4.2 percent QoQ)
#2 Domestic loans declined mainly due to non-retail loans, down 3.5 percent versus +4 percent
#3 Domestic retail was healthy, at 3.6 percent versus 5.5 percent
#4 Overseas book was down 1 percent versus +2.7 percent last quarter
#5 Domestic deposits declined, down 2 percent versus +5.7 percent QoQ
#6 Domestic LDR was steady QoQ

GRM Overseas has entered into an agreement with DIPLOMAT GEORGIA to place its own brand of basmati rice ‘Tanoush’’ through DIPLOMAT Distribution Channels.

KPI Green Energy has successfully signed a Power Purchase Agreement (PPA) for a 50MW Solar-Wind Hybrid Power Project with Gujarat Urja Vikas Nigam Limited (GUVNL).

This project, comprising of 50 MW Solar and 16.80 MW Wind, was awarded through a competitive bidding process issued by GUVNL on November 1, 2023, and secured through a reverse EAuction on January 22, 2024.

Markets@1 | Sensex, Nifty recover; metals drag

The Sensex was down 73.03 points or 0.09 percent at 79,923.57, and the Nifty was down 26.20 points or 0.11 percent at 24,297.60. About 1490 shares advanced, 2000 shares declined, and 102 shares unchanged.

The Tata Motors Group global wholesales in Q1 FY25, including Jaguar Land Rover were at 3,29,847, higher by 2 percent, as compared to Q1FY24.

Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in Q1FY25 were at 93,410, higher by 6 percent, over Q1FY24.

Global wholesales of Tata Motors passenger vehicles in Q1FY25 were at 138,682, lower by 1 percent as compared to Q1 FY24.

Bengaluru-based Zinka Logistics Solutions, the country’s largest digital platform for truck operators in fiscal 2024, has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO).

Sensex Today | Nifty Metal index down 1%; Adani Enterprises, Jindal Steel, JSW Steel among major losers

The board has approved the appointment of Ratan Kumar Kesh as Interim MD & CEO of the bank, effective July 10, for three months or until a new MD & CEO takes charge, whichever is earlier. Currently, Kesh is the Executive Director & Chief Operating Officer of the company.

Honasa Consumer is a play on execution, with management thrust on expanding TAM and remaining ahead of the curve helping sustain the healthy growth.

The company has ramped up its R&D capability which is likely to aid in expanding into niche efficacy-based segments.

On the back of multiple initiatives for optimizing spending, for arresting leakages, and improving operating leverage, broking house sees healthy margin expansion ahead sustaining the robust earnings.

Sensex Today | Nifty Midcap 100 falls 0.5%; AU Small Finance Bank, Cummins, Astral among major losers

Sensex Today | Nifty Bank index sheds 360 points from day's high

The board has given its approval for the acquisition of a 42.99% stake in JM Financial Credit Solutions (JMFCSL) by JM Financial for Rs 1,282 crore, and acquisition of a 71.79% stake in JM Financial Asset Reconstruction Company (JMFARC) by JMFCSL from JM Financial for Rs 856 crore.

Post transaction, the stake held by JM Financial in JMFCSL will increase to 89.67% and JMFCSL's stake in JMFARC will increase to 81.77%.

Broking house expect JLR margins to remain stable over FY24-26, given: 1) rising cost pressure as it invests in demand generation, 2) normalizing mix, and 3) EV ramp-up, which is likely to be margin-dilutive.

Even in India business, both CV and PV businesses are seeing moderation in demand.

Broking house factored in flat margins for India business over our forecast period.

While there is no doubt that TTMT delivered an extremely robust performance across its key segments in FY24, the above-mentioned headwinds could hurt its performance going ahead.

The stock trades at 17x/15x FY25E/FY26E consolidated EPS and 6x/5x EV/EBITDA.

HPL Electric & Power has signed a Memorandum of Understanding with Guangxi Ramway Technology Co. Ltd, China for local manufacturing under phased Manufacturing/ technical Tie-up/ Procurement for the assembly of Relay/Latching Relays in India.

#1 Launched 125cc CNG motorcycle at Rs 95,000-1,10,000
#2 Continue to believe future is EV
#3 CNG motorcycles won't impact the electrification pace of the market
#4 100- 110cc motorcycle & entry level 125cc motorcycles will be impacted over medium-term
#5 Analysis indicates Hero has a market share of 66 percent in this segment in FY25

Shares of Bank of Baroda fell 4 percent on July 8, dragged by the lender's weakest deposit and advances growth in 12 quarters. On top of that, the lender's deposit and advances also dropped on a sequential basis.

Global deposits fell 1.6 percent on quarter to Rs 13.05 lakh crore while domestic deposits were down 2 percent to Rs 11.05 lakh crore. Advances also slipped 1.7 percent on sequential basis to Rs 10.72 lakh crore in Q1 of FY25.

On a yearly basis as well, growth was the slowest seen in the last 12 quarters. On an on-year basis, deposits were up around 9 percent while advances grew 8.1 percent. Read More

Sensex Today | BSE Energy index up 0.5%; Sandur Manganes, Oil India, Chennai Petro gain 3-5%

#1 All eyes will be on gross refining margin in upcoming earnings
#2 View company as a play on monetisation 4.0 Cycle
#3 Refining upcycle view remains intact despite decline in last quarter
#4 Net debt and slower capex intensity should support valuation in FY25

Tribhovandas Bhimji Zaveri will be opening its 34th store and 4th Franchise store at Plot No. E-9, Vaishali Nagar Yojna, Gautam Marg, Vaishali Nagar, Jaipur - 302021, Rajasthan on Monday, 8th July, 2024.

The board df Directors of PVV Infra approved issue of 1 bonus share for every 1 equity share held by the equity shareholders of the company as on 'Record Date'.

Mukesh Malik will relinquish his position as Chief Operating Officer of the company, effective July 31, as he has opted for early retirement.

Punjab National Bank has approved the company's one-time settlement proposal to settle the outstanding dues. The conditions of the one-time settlement include the cash and equity components payable under the settlement, and the release of securities and mortgaged properties.

Sensex Today | BSE Oil & Gas index up 0.6%; Oil India, IOC, ONGC among major gainers

#1 Reports billing growth of 11 percent YoY in Q1FY25
#2 Improvement in Naukri billing on a low base
#3 9 percent YoY growth in Naukri's billing is highest in 5 quarters
#4 Underlying hiring trends remain weak
#5 YoY improvement in billing suggests a potential pick up in hiring

#1 Total deposits grow 8.52 percent to Rs 12.24 lakh crore, YoY
#2 Global gross advances increase 11.46 percent to Rs 9.12 lakh crore, YoY
#3 Domestic CASA deposits up 3.76 percent at Rs 3.99 lakh crore, YoY

#1 Order for supply of FIM LV Panels and Skid

#1 Collections down 16% QoQ at Rs165 cr

#2 Sales value up 36% YoY, up 7% QoQ at Rs306 cr

#3 Carpet area sold down 3% YoY, & up 16% QoQ

#1 Gross retail collections up 28% YoY at Rs794 cr

#2 Strong leasing traction seen in Q1

#3 Occupancy in commercial assets at 71% in June vs 70% in March

#4 St Regis ARR flat at Rs16,425, courtyard Agra ARR down 11% at Rs3,919 YoY

#5 Gross residential sales at Rs50 cr, collections at Rs60 cr

Markets@11 | Sensex, Nifty trade lower

The Sensex was down 105.87 points or 0.13 percent at 79,890.73, and the Nifty was down 29.20 points or 0.12 percent at 24,294.60.

Sensex Today | BSE Smallcap index hit fresh record high of 54,617.75

Sensex Today | BSE Midcap index touched fresh record high of 47,634.29

The Board of Directors of the company will meet on July 10 to consider enhancing the borrowing limits for FY25 and raising funds for FY26.

The lender has entered into a strategic Bancassurance partnership with Bajaj Allianz Life Insurance. With this collaboration, it now has a total of 10 insurance partners. This strategic alliance will give Federal Bank's customers access to Bajaj Allianz Life Insurance Company’s product suite.

Shareholders have approved the appointment of Kumar Venkatasubramanian as a Director and Managing Director of the company for five years, effective May 1, 2024.

The company has further acquired 4,618,199 equity shares, representing 16.92% of the current paid-up share capital and 16.76% of the expanded capital of Cigniti, at Rs 1,398.50 per share.

With this, the company holds 27.98% of the current paid-up share capital and 27.73% of the expanded capital of Cigniti.

#1 Company’s Q1 performance was broadly in-line with our estimates
#2 Company’s demand trends continued gradual improvement
#3 Management expects revenue growth to improve, led by domestic volume growth
#4 Revenue growth to improve led by higher realisations

Broking house expect JLR margins to remain stable over FY24-26, given: 1) rising cost pressure as it invests in demand generation, 2) normalizing mix, and 3) EV ramp-up, which is likely to be margin-dilutive.

Even in India business, both CV and PV businesses are seeing moderation in demand.

Broking house factored in flat margins for India business over our forecast period.

While there is no doubt that TTMT delivered an extremely robust performance across its key segments in FY24, the above-mentioned headwinds could hurt its performance going ahead.

The stock trades at 17x/15x FY25E/FY26E consolidated EPS and 6x/5x EV/EBITDA.

#1 Pre-sales grow 255 percent to Rs 3,120 crore, YoY
#2 Area sold increases 123 percent to 2.03 million square feet, YoY
#3 Collections grow 102 percent to Rs 1,210 crore, YoY

Markets@10 | Sensex, Nifty trade lower

The Sensex was down 180.29 points or 0.23 percent at 79,816.31, and the Nifty was down 49.80 points or 0.20 percent at 24,274.00. About 1651 shares advanced, 1635 shares declined, and 108 shares unchanged.

Sensex Today | BSE Consumer Durables index sheds 1%; Titan, VIP Industries, Whirlpool of India among major gainersc

Shalby, Khoobsurat, Oceanic Foods, Secure Credentials, and GD Trading & Agencies will announce their quarterly earnings on July 8.

#1 Consolidated entity expects revenue growth to be around 22-23 percent, YoY
#2 Gross merchandise value growth is expected to be in mid-twenties, YoY
#3 Beauty vertical revenue growth is expected to be around 22-23 percent, YoY
#4 Beauty vertical gross merchandise value growth is expected to be higher, in high twenties, YoY
#5 Fashion vertical is expected to deliver revenue growth of around 20 percent, YoY
#6 Fashion vertical gross merchandise value growth is expected to be lower at mid-teens, YoY

#1 Global business grows 8.52 percent to Rs 23.77 lakh crore, YoY
#2 Global advances increase 8.14 percent to Rs 10.72 lakh crore, YoY
#3 Global deposits up 8.83 percent at Rs 13.06 lakh crore, YoY
#4 Domestic deposits grow 5.25 percent to Rs 11.05 lakh crore, YoY
#5 Domestic advances increase 8.51 percent to Rs 8.81 lakh crore, YoY

Gold prices slipped on Monday, as investors booked profits after bullion hit a more than one-month high in the previous session on rising bets of U.S. interest rate cuts in September.

Spot gold fell 0.4% at $2,382.17 per ounce, after rising to its highest level since May 22 on Friday. U.S. gold futures eased 0.3% to $2,391.10.

The board of directors of Nestle at its meeting held today declared an interim dividend of Rs 2.75 per equity share of face value of Re 1 each for the financial year 2024-25 on the entire issued, subscribed and paid-up share capital of the company comprises of 96,41,57,160 equity shares of the nominal value of Re 1 each.